OECD Principles Of Corporate Governance Research Articles

ACCOUNTABILITY OF TAX RECEIVABLE MANAGEMENT: A CASE STUDY AT DIRECTORATE GENERAL OF TAXES

Tax receivables managed by the Directorate General of Taxes (DGT) have enormous potential in state revenues but can also potentially lose the state if not appropriately handled. This can be seen from the audit results of the Audit Board of The Republic of Indonesia (BPK), which found inadequate administration of tax receivables with a value of more than Rp 20 trillion and repeated from previous years. This study's novelty is using the Global Accountability Project (GAP) approach and the OECD Principles of Corporate Governance to see the extent of accountability in tax receivables management with DGT as the research object. This study uses a qualitative method using primary data, interviews with DGT, BPK, and the Inspectorate General of the Ministry of Finance (ITJEN), and secondary data related to achievements performance during 2019-2022. The research results show that, in general, the accountability of tax receivables management by the DGT is good. Still, several things need improvement, such as improving the administration and supervision of overdue receivables by adding an early warning system, a capable bailiff, regulation of unpublished tax penalties, increasing cooperation with third parties, and increasing the billing budget.

Czech Corporate Governance in the Light of its History and the Influence of the G20/OECD Corporate Governance Principles

This article maps the development of Czech corporate law after 1989 against the backdrop of the gradual change of private law and its paradigms as well as considering especially the influence and use of corporate governance soft law. It describes some of the economic, political and social reasons that slowed down or marginalized the relevance of OECD Corporate Governance Principles after the transition of Czechoslovakia and later the Czech Republic to democratic law. At the same time, the article attempts to show that while the gradual recodification of corporate law, in particular corporate governance rules, did not provide much support for the use of corporate governance codes, it nevertheless reflected the relevant rules and recommendations for statutory rules, thus, partially attaining similar goals. The authors of this article therefore believe that the lack of the practical development of some aspects of corporate governance or corporate social responsibility is often not due to the inadequacy of legal regulation but is rather the result of an overestimation of the personal characteristics of entrepreneurs, their reluctance to introduce complex governance structures and a rigid or very conservative interpretive positivism.

Corporate governance: A review of the fundamental practices worldwide

This paper focused on the concept of corporate governance based on shareholders’ and stakeholders’ perspectives and the development of corporate governance around the world, including the UK, the US, and Australia. The OECD Principles of Corporate Governance were presented, including shareholders’ rights, the equitable treatment of shareholders, disclosure and stakeholders’ rights and transparency practices, and the responsibilities of board of directors. Numerous corporate collapses have highlighted the call for the management and directors of companies to be more accountable, and they have led governments and international organisations such as the OECD to be more active in establishing principles of corporate governance. It was concluded that the system of corporate governance has increased in different countries in relation to the nature of the economy, legal systems, and cultural norms

Derivative Action- An Impartial Right given to Minority Shareholders under Pakistan’s Legislation

Derivative Action- An Impartial Right given to Minority Shareholders under Pakistan’s Legislation

Evaluating the Quality of Corporate Governance of Swiss Banks

Abstract The aim of this research is to investigate the corporate governance frameworks of listed Swiss bank, to evaluate their performance across several indicators and identify strengths and weaknesses of their internal guidelines and code of best practice. More specifically, we use the OECD Principles of Corporate Governance, the Basel Committee Guidance on Corporate Governance for Banks and the Swiss Code of Best Practices for Corporate Governance to develop a framework to evaluate the corporate governance of Swiss banks relative to factors such as board structure, board composition, transparency, compensation and risk management To meet the aim of the research, we collect qualitative data from publicly available yearly reports, corporate governance documents and codes of conduct from a sample of listed Swiss banks. We find that, overall, Swiss banks have a sound corporate governance framework. However, board gender diversity is low. Also, there are differences between smaller and bigger banks in board composition. Our findings contribute to the understanding of the corporate governance structure of listed Swiss banks and they can be a useful tool for the banks, which can use our findings to implement enhancements to their corporate governance frameworks.

Enhancement of the professional competence of specialists who form an accumulative pension system based on social responsibility

The purpose of the study is to determine the areas of increasing the social responsibility of the private pension funds (NPF) based on the growth of professional competence of specialists in the formation of the system of funded pension provision through the risk-based government regulation and supervision. The article proposes an improved definition of the social responsibility of the subjects of the accumulative pension system and determines the qualitative indicators of their social responsibility. An analysis of the work experience of pension funds in Thailand, Brazil, the United States, Norway and the South Africa allows us to conclude that the main areas of increasing social responsibility are to ensure decent and safe working conditions, environmental safety, absence of corruption and violation of the ethical and legal norms. It is proved that the subjects of the accumulative pension system should act on the basis of corporate governance and be guided by the OECD principles of corporate governance. According to the best foreign practices, improving the competence of pension fund employees is one of the main areas of the social responsibility. To determine the directions of increasing the social responsibility of the subjects of the accumulative pension system, an expert survey was conducted. Based on the results of the study, it is substantiated that the main direction is to increase the professional competence of specialists in the formation of a funded pension system based on risk-oriented state regulation and supervision.

An Overview of Corporate Governance Practice in Companies Listed on the Libyan Stock Market

The corporate governance concept has recently become a major issue in the corporate practices of both developed and developing countries alike. Corporate governance is considered to be a tremendously important topic in many countries around the world; specifically within the emerging stock markets in order to protect the minority of shareholders. The aim of this research is to investigate corporate governance practices in companies listed on the Libyan stock exchange. In particular, to investigate whether corporate governance practices in these companies meet international standards of corporate governance and to identify the main obstacles to implementing them. The concept of corporate governance, corporate governance practices in developing countries, the Libyan stock market and OECD principles of corporate governance were discussed. A close-ended questionnaire was the main method for data collection. 100 questionnaires were distributed to the participants of the study, and only 76 questionnaires usable for analysis were received. Several issues related to corporate governance, depending on OCED principles, were investigated. The results revealed that corporate governance practice in the companies under investigation fit with OCED principles of corporate governance in some aspects and do not fit in others. Furthermore, the most important obstacles were perceived impeding corporate governance practice in companies listed in the Libyan stock market are "lack of compliance with the laws governing the work of companies" and "high cost of applying corporate governance rules". (JEL G30) Keywords: Corporate governance, the Libyan stock exchange, developing countries, OCED principles of corporate governance

The Gaps and Lessons of Ethiopian Share Company Governance in Light of International Company Model Laws

The proper governance of companies will become as crucial to the world economy as the proper governance of countries. It is the interaction between various participants (Shareholder, Board of Director and Company Management) in shaping corporation’s performance and the way it is proceeding towards. Besides, it is the system by which companies are directed and controlled. Thus, corporate governance requires a legal and regulatory framework which is strong in order to attract investors to invest their capital in a company or organization. This development of corporation makes the requirement of good corporate governance inevitable in the modern corporate business. Coming to the corporate governance under Ethiopian commercial code, the law recognizes board of directors, shareholders meeting and auditors as the three principal organs of management. However, the law is criticized for its inadequacy of ensuring the interests and rights of shareholders (for instance, it does not adequately address the issues of basic ownership rights and there is also a fusion of power on single individual which opens the way to abuse the assets of a share company to the detriment of the shareholders), and other stakeholders to cope with the need of the prevailing corporate issues in the country. Accordingly, as to there is an increasing in number of share companies and their potential contribution to the economy of Ethiopia, such development will be sustainable only when it is supported by adequate legal and sound corporate governance. It will be shown that Ethiopia’s corporate governance rules should be updated in order to increase the growth of companies and protect the interests of stakeholders. When a country revises its laws, it is an inevitable to look at laws and policies of advanced economies. In this regard the thesis critically analysis the Ethiopian share company governance with the OECD principles of corporate governance and EMCA general principles. Keywords: Corporate Governance, Share Companies, Organs of Governance, OECD, EMCA and Basic Ownership Rights of Shareholders. DOI: 10.7176/JAAS/71-03 Publication date: April 30 th 2021

Преимущества внедрения наблюдательного совета в сфере здравоохранения Казахстана

In order to increase the competitiveness and efficiency of medical organizations, is the implementation of the OECD Corporate Governance Principles. At the moment, most of the medical organizations of Kazakhstan are transferred to state enterprises on the basis of economic management with supervisory boards. Key words: medical organization, corporate governance, state-owned enterprises on the right of economic management, supervisory board, rating score, levels of assessment of corporate governance.

OECD PRINCIPLES FOR GOOD CORPORATE GOVERNANCE AND THEIR IMPACT ON PROCESS OF STANDARDIZATION

In May 1999, the OECD published the "Principles of Corporate Governance", which are also the first intergovernmental attempt to develop international standards for corporate governance. These principles demonstrate the importance of introducing a basic framework for good corporate governance, in line with rapid technological development, existing economic changes that contribute to the globalization process and increasingly break the boundaries of markets with the tendency of creating a large global and single market. Along with that process of globalization and investment opportunity, the current development in the business world, OECD principles are an indicator and benchmark for international financial institutions, as well as a measure by which governments can be guided in evaluating their corporate laws and regulations management. The principles are developed in a way that is flexible and can be adopted in different cultures, environments and traditions in different countries. As a result, the private sector has, in many countries, used them as a basis for developing its corporate governance codes. As a result, the Corporate Governance Principles have become an international standard for corporate governance by promoting transparency, integrity and the rule of law. The latest released version of the so-called G20 / OECD Corporate Governance Principles take into account recent advances in the financial and corporate sector, which have the potential to influence the effectiveness and relevance of corporate governance policies and practices. Due to the changing world market situation, they have undergone changes and become their final form in 2015. As a result, their goal is actually to serve all countries around the world in the process of evaluating and promoting their legal , institutional and regulatory framework for corporate governance. Although numerous and diverse factors influence the management and decision-making process within each company that are important for its long-term growth, the Principles focus on management issues and problems arising from separation of ownership and control. Standardization, by means of principles, will involve the creation of unified business processes in different organizational units or locations with similar levels of cost and performance goals and the use of good working practices.

Convergence to shareholder primacy corporate governance: evidence from a leximetric analysis of the evolution of corporate governance regulations in 21 countries, 1995-2014

PurposeFor the past two and half decades, there has been a marked shift in the corporate governance regulations around the world. The change is more remarkable in developing countries where countries with little or no corporate governance regime have adopted “world class” standards. While there can be a debate on whether law in books actually translates into law in action, in the meantime it might be interesting to analyse the law in books to understand how the corporate governance regime has evolved in the past 20 years. This paper quantitatively tracks 21 countries, most of them being developing and emerging economies, over a period of 20 years. The period covers 1995 to 2014; thus, it traverses the pre and post crisis period in 1999 and 2008. Thus, the paper also provides a snapshot of the macrolegal changes that the countries engage in hoping to stave off the next crisis. The paper uses over 50 parameters modelled on the OECD Principles of Corporate Governance. The paper confirms the suspicion that corporate governance norms around the developing economies are converging on shareholder primacy end of the continuum. The rate of convergence was highest just before the financial crisis of 2008 and has since then slowed down.Design/methodology/approachThe paper uses data collected from experts. They filled up detailed questionnaire which quizzed them on the rules relating to corporate governance norms in their country and asked them to retrospectively check their data every five years for the past 20 years. This provided an excellent overview as to how the law has evolved in the past two decades on corporate governance. The data were then tabulated using a scoring sheet and then was put together using item response theory (IRT) which is a Bayesian method similar to factor analysis. The paper then follows a comparative approach using heatmaps to analyse the evolution of corporate governance in developing countries.FindingsCorporate governance norms around the developing economies are converging on shareholder primacy end of the continuum. The rate of convergence was highest just before the financial crisis of 2008 and has since then slowed down.Originality/valueThis is the first time that corporate governance panel data analysis has been carried out on top developing countries across so many parameters for such a long period. This paper also uses Bayesian IRT modelling to analyse the evolution which is novel in its approach especially in the corporate governance literature. The paper thus provides a clear view on the evolution of corporate governance norms and how they are converging on a particular ideology.

Does regulation matter? Changes in corporate governance in China and its impact on financial market growth: an empirical analysis (1995-2014)

PurposeOver the past two decades, China’s stock market has experienced rapid growth. This period has seen the transplantation of many “OECD principles of corporate governance” into the Chinese corporate regulatory framework. These regulations are dominated by shareholder values. This paper aims to discover whether there is a causal relationship between the changes in China’s corporate governance and financial market growth.Design/methodology/approachThis paper uses data from 1995-2014 to create a robust corporate index by looking at 52 variables and a financial index out of five financial market parameters. Subsequently, data are subject to a panel regression analysis, with the financial market index as the outcome variable, corporate governance index explanatory variable and a variety of economics, social and technological control variables.FindingsThis paper concludes that changes in corporate regulation have in fact had no statistically significant impact on China’s financial market growth, which must therefore be attributed to other factors.Originality/valueThe study is the first in the context of Chinese corporate governance impact studies to use Bayesian methodology to analyse a panel dataset. It uses OECD principles as the anchor to provide a clear picture of evolution of corporate governance for a 20-year period which is also longer than previous studies.

The Association among Corporate Governance, Corruption, and Economic Prosperity in the Socialist Republic of Vietnam

AbstractThe OECD considers compliance with the OECD principles of corporate governance and reduced corruption to be positively associated with economic prosperity. Prior empirical research supports this notion for developed countries. However, findings for developing and emerging countries are more diverse, as some studies document an “East Asia paradox” and link higher levels of corruption with positive outcomes at the firm or country level. Our case study on the Socialist Republic of Vietnam contributes to the literature by identifying determinants of these mixed findings. Relying on triangulation, our results suggest that internationalizing and international firms must adhere to OECD expectations to prosper, while domestic firms prefer operating in corrupt but stable conditions. Due to this mechanism, noncompliance with OECD principles and corruption can deter foreign direct investments and thus negatively influence economic growth. Nevertheless, noncompliance with OECD principles and corruption can still work to benefit domestic firms. Given our results for Vietnam, we argue that the internationalization of the business models of the firms analyzed might explain the prior inconclusive empirical findings.

An assessment of corporate governance in financial institutions in Barbados

The objective of this paper is to provide an assessment of corporate governance in selected financial institutions in Barbados. The instrument used for measuring corporate governance practice is derived from the Central Bank of Barbados (CBB) Corporate Governance Guidelines (2013) and the OECD Principles of Corporate Governance (OECD, 2004). A corporate governance index is developed to best fit the domestic financial system. The results indicate that the five financial institutions are highly compliant with the corporate governance guidelines. The corporate governance index ranges from 75 to 92 on a scale of 0 to 100 in ascending order of good corporate governance. Commercial banks obtained the highest corporate governance rankings. This result is not surprising since the banks operating in Barbados are affiliates of foreign-owned and domiciled financial institutions. They are therefore monitored by multiple local, regional and international regulatory agencies. This paper is the first such research effort for the Barbadian economy. The findings should be beneficial to many persons, including top management (CEO, Chairman, Board of Directors), shareholders and other stakeholders, regulators and future researchers.

Corporate Govarnence and Welfare/Corporate Governance in Turkey

To this day, in the 21st century, after discussing the theory of organizational theory, the Anglo-Saxon approach, which primarily focuses on protecting the shareholder rights, and not only the shareholder rights, but also the protection of the rights of all beneficiaries, we see it going on. Good corporate governance is not an end in itself. It is a tool for creating market confidence and business integrity required for companies that need access to equity for long-term investment. Access to equity is especially important for balancing the growing companies and increasing indebtedness for the future. The principles also relate to inclusiveness. Today, the savings of millions of households in the world are directly or indirectly in stock markets. In addition, publicly traded companies provide more than 200 million jobs. The principles also address the rights of these stakeholders and their participation in the creation of wealth.Corporate governance is recognized as one of the standards for sound financial systems and is used by FSB, G20 and OECD members. It also forms the basis of the OECD guidelines on management of insurance companies and pension funds and the reference of reforms in many countries, published by the Basel Banking Supervision and Audit Committee. OECD corporate governance principles; I) Ensuring the basis of effective corporate governance framework II) Shareholders’ rights and fair treatment and basic partnership functions III) Institutional investors, equity markets and other intermediaries IV) The role of stakeholders V) Public disclosure and transparency. VI) Responsibilities of the Board of Directors In the form of main headlines.This study will try to bring a perspective on the relationship between corporate governance principles and economic development. How its process is managed? The examples of the country will be examined and the effect of this style on the economic life will be examined.

The Opening of the Stock Market of Angola and the Challenges for Companies at the Level of the Financial Reporting System and Corporate Governance

This research aims to analyze the main requirements in terms of financial reporting and corporate governance mechanisms established by the Capital Market Commission (CMC) of Angola to companies operating on the capital market of Angola. Using a qualitative investigation approach, we conclude that, overall, Angola is providing itself with a legal framework that is in convergence with the major orientations of the international organizations, regarding the requirements made to entities operating in the capital market, in terms of governance and oversight of those corporations, of their financial reporting process. However, there is an urgent need for the CMC of Angola to orient or even advocate the mandatory adoption of the IASB’s international accounting standards for entities operating (or intending to operate) in the capital market of Angola. At the Corporate Governance level, we found a fair convergence of the principles and recommendations of the CMC regarding the OECD Corporate Governance principles.

How successfully China has applied the OECD principles of corporate governance: a critical assessment

This paper attempts to critically analyze how successful China has been in applying the OECD principles of corporate governance. In doing so, assessment has been made in light of the six core issues of the OECD principles. A satisfactory level of progress has been noted in China’s legal and regulatory framework since the 1990s. New laws, regulations, and rules have been enacted, existing ones have been amended, and all the required institutions have been built accordingly in order to ensure good corporate governance practices in the country. However, there are still bottlenecks in terms of the enforcement of these laws, regulations, and rules mainly due to the various structural limitations in the Chinese administration and judiciary. The paper argues that China should now move forward with an accelerated enforcement agenda in the area of corporate governance in order to make China Inc. more competitive and sustainable.

Corporate governance codes of Eurasian Economic Union countries: a comparative investigation

PurposeThe purpose of this paper is to comparatively analyze the corporate governance codes of transition economies, particularly five Eurasian Economic Union (EAEU) members (i.e. Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia). Specifically, the convergence or divergence of these countries’ corporate governance codes among themselves as well as relative to the best practices of the UK Corporate Governance Code (UK Code) and the OECD Principles of Corporate Governance are investigated.Design/methodology/approachInitially, the existing literature on corporate governance with special focus on transition countries is reviewed. Afterwards, benchmarking the international best practices, based on main chapters and contents, the corporate governance codes of all countries in the sample are analyzed.FindingsThe paper finds that even though some principles of the corporate governance codes of the countries in the sample differ in some aspects, they do converge to some extent. However, high misalignments between the UK Code and the OECD Principles and the codes of selected countries in some aspects were found.Research limitations/implicationsThe conclusion and implications of the study characterize the corporate governance of selected developing countries; thus, they might not be generalizable to other countries.Practical implicationsThe codes of the countries in the sample should be revised, and more specifications regarding the stakeholder, board structure, its subcommittees, independence, diversity and transparency issues need to be addressed.Originality/valueThe paper comprehensively analyzes the contents of corporate governance codes of transition countries; from both practical and academic point of view, it was important gap that needed to be fulfilled.

Transparency and Opaqueness in the Chinese ICT Sector: A Critique of Chinese and International Corporate Governance Norms

AbstractThis article critiques the current Chinese corporate governance framework and the OECD Principles of Corporate Governance (OECD Principles) on which the Chinese framework is largely based through detailed analysis of public disclosures by four prominent Chinese internet and communications technology (ICT) firms. These include State-controlled firms (China Telecom & China Mobile), mixed ownership (ZTE), and privately-controlled firms (Huawei Technologies). The article argues that neither Chinese nor international corporate governance norms deal adequately with the complex group structures that are so common among large Chinese firms. It also reveals deficiencies in the rules on independent directors, supervisory committees, and Chinese Communist Party committees as they are applied by Chinese ICT firms. The article concludes with reform proposals that would provide more useful information and better protection to outside investors and public stakeholders in the unique Chinese corporate environment.

Kvalitetno korporativno izveštavanje - preduslov efikasnog menadžmenta

The main thesis of this paper is that high-quality corporate reporting is necessary to improve corporate governance. In new, modern business conditions, with strong dynamic changes in social and business environment, modern corporate companies, that is their management bodies obtain new features, adapting to new demands and challenges. In this sense, new demanding business conditions require continuous improvement of corporate governance potential, and especially information support through high-quality corporate reporting. In essence, high-quality corporate reporting should be in the function of 'revitalizing' the OECD principles of corporate governance. Financial reports should truly express income and financial position of a corporate company with the features of 'assets custodian' and 'custodian of trust' in corporate governance. Legislative and regulatory bodies all over the world are involved in this process of improving corporate reporting in various ways, through giving instructions, guidelines, models and directives. Serbia is waiting for harmonization with the EU and implementation of the most important requirements from the EU directives.